SPORTS ILLUSTRATED AGREEMENT DATED NOV. 10, 1999
EXHIBIT 10.11
AGREEMENT made this tenth day of November, 1999, by and between
SPORTS
ILLUSTRATED, a division of Time Inc. ("SI"), a Delaware corporation with
offices
at the Time & Life Building, Rockefeller Center, New York, New York
10020 and
Total Sports Inc. ("TS"), a Delaware corporation with offices at 105
Abeel
Street, Kingston, New York 12401.
WHEREAS, SI is in the business of compiling, developing, authoring,
and
publishing sports information in electronic, printed and pictorial form,
including in SPORTS ILLUSTRATED Magazine (the "Magazine"), books and on
the web
site known as "cnnsi.com" (the "CNNSI Site");
WHEREAS, TS is in the business of compiling, developing, authoring,
and
publishing sports information in electronic, printed and pictorial form
in books
and on its web sites such as "totalsports.net" (collectively, the "TS
Sites");
WHEREAS, the parties desire to jointly and individually create,
license,
reissue and produce books as further described in Section 4 below
(collectively
and individually, the "Book(s)") for sale or license under the
Total/SPORTS
ILLUSTRATED imprint (the "T/SI Imprint");
WHEREAS, each party wishes to authorize the use of its respective
trademarks for such purpose; and
WHEREAS, TS desires to produce, manufacture and distribute the
Book(s)
through wholesale and retail and other channels of trade;
NOW, THEREFORE, the parties hereto hereby agree as follows;
1. Grant of License.
----------------
Subject to the conditions set forth herein, SI grants to TS,
during
the Initial Term and any Renewal Term, as defined below, and throughout
the
world (the "Territory"), the following rights:
Portions of this exhibit marked by [*] have been omitted
pursuant to a
request for confidential treatment.
1
1.1. an exclusive, nontransferable license to print, publish
and sell
English language editions of the SI Book(s) and the T/SI Joint Book(s),
as
defined below, and distribute the SI Book(s) and the T/SI Joint Book(s),
through
TS's contractual arrangement with Publishers Group West ("PGW") or such
other
distributor as TS shall then use for distribution of its books through
normal
wholesale and retail trade channels and to stadiums and other sports
venues,
sporting goods stores and through the TS Sites;
1.2. subject to SI's prior approval, an exclusive,
nontransferable
license to distribute the SI Book(s) and the T/SI Joint Book(s), by
direct
response;
1.3. subject to SI's prior consent, an exclusive license to
exploit or
sublicense the following subsidiary rights in the SI Book(s) and the
T/SI Joint
Book(s): book club, paperback reprint editions, serializations, audio
books,
foreign language editions, electronic book editions and such other
rights as the
parties shall mutually agree. "Electronic book edition" as used herein
shall
mean versions of the Book(s) in information, storage and retrieval
systems, and
all other non-book forms of copying, distribution or transmission,
whether now
known or hereafter developed, intended to make the text of, and any
illustrations or photographs contained in the Book(s) available in
visual form
for reading (including but not limited to, electronic or machine-
readable media,
or online electronic data transmission). Notwithstanding the foregoing,
the
parties acknowledge and agree that SI shall have the right to first
offer the
opportunity to Time Warner Inc., its subsidiaries and other divisions to
exercise any of the rights granted herein. The parties agree that SI
shall allow
any such Time Warner Inc. entities a period not to exceed sixty (60)
days from
SI's receipt of a complete manuscript in which to notify SI whether such
entity
desires to acquire rights in a Book(s). If such entity fails to make an
offer
and commence negotiations with SI within said sixty (60) day period, or
if SI
and such entity are unable to reach an agreement as to terms acceptable
to SI
and TS within thirty (30) days after commencing negotiations, TS shall
be free
to offer such right(s) to non-Time Warner entities. SI acknowledges and
agrees
that it shall not offer any Time Warner Inc. entity any matching or
topping
rights in connection with the disposition of any subsidiary right in the
Book(s).
1.4. Anything to the contrary in Section 1.2. above
notwithstanding,
TS acknowledges and agrees that certain SI Book(s), and if mutually
agreed upon,
certain TS Books as described in Section 4.6. below shall be distributed
via
direct response, including via Time Warner web sites, by Time Inc. Home
Entertainment ("TIHE").
2. Reservation of Rights.
---------------------
2.1. All other rights with respect to the SI Trademark, the
T/SI
Trademark, the SI Book(s) and the T/SI Joint Book(s), whether now
existing or
which may hereafter come into existence, which are not expressly granted
to TS
herein, including but not limited to, commercial and merchandising,
video and
movie and television rights, are expressly reserved to SI.
Notwithstanding the
foregoing, TS shall continue to have the unlimited and unrestricted
right to use
the name, "Total Sports", as
2
both a trademark and a trade name throughout the world and neither the
reservation herein to SI of all rights to the T/SI Trademark nor any
actual use
by SI of such trademark shall limit or derogate from TS' prior rights to
the
"Total Sports" name. Further, SI acknowledges and agrees that, except in
connection with the promotion and marketing of the Book(s), it shall
neither
itself nor license others the right to exploit commercial and
merchandising
rights in the T/SI Trademark.
2.2. TS shall have no right to use or distribute the SI
Book(s) and
the T/SI Joint Book(s) or any derivative work thereof except as provided
for
herein.
2.3. Anything to the contrary in Section 1.2 notwithstanding
and
except as provided in Section 8.2, SI shall have the right to promote
and
distribute the SI Book(s), the TS Book(s) and the T/SI Joint Book(s) by
direct
response using the Time Inc. and/or Time Warner mailing lists, any Time
Inc. or
Time Warner Inc. catalogues, any issue of SPORTS ILLUSTRATED Magazine,
or other
Time Inc. or Time Warner Inc. publications, in any and all formats. TS
shall
sell copies of the SI Book(s), the TS Book(s) and the T/SI Joint Book(s)
to SI
for such direct response use at TS's direct cost to manufacture plus [*]
percent
([*]%) (royalty inclusive). No royalty shall be payable by TS to SI in
connection with such sales.
2.4. SI shall have the right to distribute the SI Book(s), the
TS
Book(s) and the T/SI Joint Book(s) as a Time Inc. premium and as a
subscription
premium. TS shall sell copies of the SI Book(s), the TS Books(s) and the
T/SI
Joint Book(s) to SI for such premium use at TS's direct cost to
manufacture plus
[*] percent ([*]%) (royalty inclusive). No royalty shall be payable by
TS to
SI in connection with such sales.
2.5. SI acknowledges and agrees that copies of the Books
ordered
pursuant to Sections 2.3. and 2.4. above and/or Sections 8.2. and 8.3
and 4.6.5.
----------
below shall either (i) be purchased from TS's inventory and subject to
availability, or (ii) subject to reasonable notice to TS, SI may elect
to "run
on" with any printing of the Book(s).
2.6. Subject to the royalty obligations set forth in Sections
11.2.1,
11.2.2, 11.2.3 and 11.2.5, the parties acknowledge and agree that each
shall
have the right to sell hard copies and/or electronic editions of the
Book(s) on
the T/S Sites, with respect to TS, and the CNNSI Site and/or any Time
Warner web
sites with respect to SI. The parties agree that any electronic editions
sold
shall be encrypted to prevent unauthorized copying and/or distribution.
Portions of this exhibit marked by [*] have been omitted
pursuant to a
request for confidential treatment.
3
3. Term.
----
3.1. The term of this Agreement shall commence upon the
execution
hereof and shall continue for an initial period of three (3) years from
the
initial publication of the Fall, 1999 list of T/SI Book(s) (the "Initial
Term").
3.2. Provided that TS shall have paid to SI the sum of [*]
Dollars
($[*]) during the Initial Term of the Agreement or within thirty (30)
days
thereafter, TS shall have the right, upon sixty (60) days written notice
to SI,
to renew the Agreement for an additional three (3) year term (the
"Renewal
Term") on the terms and conditions as contained herein.
4. Book(s).
--------
4.1. The SI Book(s). The SI Book(s) shall be defined as book
length
---------------
original works created or licensed by SI during the Initial Term and/or
Renewal
Term and the Main Book Series. Additionally, TS and SI shall mutually
agree on
any of SI's reissued and/or revised editions of previously published
works to be
included in the SI Book(s) and shall further mutually agree on the
publication
schedules for the Book(s). The parties agree that TS shall update the
"instructional line" of SI Book(s). Notwithstanding the foregoing, SI
reserves
the exclusive right to create, print, publish, sell and/or giveaway: (i)
custom
published publications of any nature ("Custom Published Books"); (ii)
SPORTS
ILLUSTRATED branded books as a premium; and (iii) any motion picture
and/or
television tie-in publications. "Custom Published Books" shall be
defined as
books and/or excerpts prepared for a particular customer, which may bear
such
customer's logo and which shall not be available alone at retail.
4.2. TS Book(s). The TS Book(s) shall be defined as book
length
-----------
original works created or licensed by TS which bear the T/SI Trademark
during
the Initial Term and/or Renewal Term. Additionally, TS and SI shall
mutually
agree on any of TS's reissued and/or revised editions of previously
published
works to be included in the TS Book(s).
4.3. T/SI Joint Book(s). T/SI Joint Books shall be defined as
book
-------------------
length original works created during the Initial Term and/or Renewal
Term to
which each of TS and SI have contributed content.
4.4. Competing Titles and Series. The parties acknowledge and
agree
---------------------------
that each party may have an existing series of books and/or annual
publications
which may compete and/or conflict with the other party's existing
publications,
contemplated publications and/or business or editorial interests. In the
event
that a party reasonably
Portions of this exhibit marked by [*] have been omitted
pursuant
to a request for confidential treatment.
4
determines in good faith that it would be deleterious to its interest to
have a
particular title and/or series published under the T/SI Imprint, then
the
objecting party shall so notify the other party and provide the other
party with
its reason for excluding such book (which reason may not be based upon
economic
advantage) and the parties agree that any such title and/or series shall
not be
published under the T/SI Imprint; however, such title and/or series may
be
published by the rights holder in such book under its own imprint or
under
license to a third party publisher.
4.5. Titles Specifically Excluded. The parties acknowledge
and agree
----------------------------
that the titles listed on Exhibit A attached hereto and made part hereof
shall
be excluded from the Book(s) which are the subject of this Agreement.
Subject to
Section 4.4., titles may be added to Exhibit A during the Initial Term
and any
Renewal Term of this Agreement.
4.6. TIHE Books.
-----------
4.6.1. TIHE currently distributes via direct mail a certain
series of
hard cover "coffee table" books which are SPORTS ILLUSTRATED-branded
sports
retrospective books featuring SI writers and photographs from SPORTS
ILLUSTRATED
Magazine (the "Main Series Books").
4.6.3. The parties acknowledge and agree that during the term
hereof,
TS shall have the right to (i) print, publish and sell paperback
editions of the
Main Series Books under the T/SI Imprint through wholesale, retail and
other
channels of trade with the express exception of sales via the Internet
and/or
through direct response, and (ii) exploit or sublicense the subsidiary
rights
set forth in Section 1.3 in the Main Series Books with the express
exception of
book club rights.
4.6.4. In the event that TS elects to publish paperback
editions of
the Main Series Books, the development costs, including of printing,
paper and
binding, of which shall have been paid by TIHE, then TS shall pay to SI
a
royalty inclusive per copy unit cost of (i) an amount equal to [*]
percent
([*]%) of TS's suggested retail price for a print run of [*] or more, or
(ii) an
amount equal to [*] percent ([*]%) of TS's suggested retail price for a
print
run of less than [*]. TIHE shall be responsible for the manufacture of
such
paperback editions of the Main Series Books.
4.6.5. In the event that TIHE desires to license TS Book(s)
for
distribution through direct response channels of trade, TIHE shall so
notify TS
and the parties shall enter into a license agreement for the term of
copyright
upon the following terms: (i) if the TIHE edition of the TS Book will
have a
suggested retail price of $[*] or more, then in consideration for such
exclusive
direct response rights, TIHE shall pay to
Portions of this exhibit marked by [*] have been omitted
pursuant to a
request for confidential treatment.
5
TS a flat fee of [*] Dollars ($[*]), or (ii) if the TIHE edition of the
TS Book
will have a suggested retail price of less than $[*], then in
consideration for
such exclusive direct response rights, TIHE shall pay to TS a flat fee
of [*]
Dollars ($[*]). TS agrees that in connection with any such license, TS
shall
provide TIHE with film or a digital version of the TS Book(s) at cost.
Notwithstanding the foregoing, the parties agree that in the event that
TIHE
desires a small, mutually agreed upon quantity of copies solely for the
purpose
of testing the marketability of such TS Book through direct response
channels,
than TS agrees that in lieu of the flat fee provided for above, TIHE
shall
purchase such test copies at TS's direct cost to manufacture plus [*]
percent
([*]%). However, in the event that the test is successful, and TIHE
elects to
enter into a license as set forth above, TIHE shall thereupon pay to TS
either
[*] Dollars ($[*]) or [*] Dollars ($[*]), as applicable. No royalties
shall be
payable to SI in connection with such direct response license to TIHE.
4.6.6. The parties acknowledge and agree that TS shall not be
entitled
to any royalty and/or compensation in connection with TIHE's sale or
distribution of the work entitled SPORTS ILLUSTRATED 2000 SPORTS ALMANAC
or
future editions of the SPORTS ILLUSTRATED SPORTS ALMANAC. TS
acknowledges and
agrees that anything to the contrary in Section 1.2 notwithstanding,
TIHE shall
have the non-exclusive right to distribute the SPORTS ILLUSTRATED 2000
SPORTS
ALMANAC or future editions of the SPORTS ILLUSTRATED SPORTS ALMANAC
through
direct response channels of trade and via the Internet.
5. Ownership.
----------
5.1. SI. Subject to the rights herein granted to TS, it is
expressly
---
understood that, as between the parties, SI shall be the exclusive owner
of all
right, title and interest including copyright, in and to SI Book(s), in
the SI
Trademark and the T/SI Trademark. SI reserves to itself complete
editorial
freedom in the form and content of the SI Book(s) and may alter the same
from
time to time in its discretion. Notwithstanding the foregoing, TS shall
continue
to have the unlimited and unrestricted right to use the name, "Total
Sports", as
both a trademark and a trade name throughout the world and neither the
reservation herein to SI of all rights to the T/SI Trademark nor any
actual use
by SI of such trademark shall limit or derogate from TS' prior rights to
the
"Total Sports" name.
5.2. TS. Subject to the rights herein granted to SI, it is
expressly
---
understood that, as between the parties, TS shall be the exclusive owner
of all
right, title and interest including copyright, in and to the TS Book(s)
and in
the TS trademark (the "TS Trademark"). TS reserves to itself complete
editorial
freedom in the form and content of the TS Book(s) and may alter the same
from
time to time in its discretion.
Portions of this exhibit marked by [*] have been omitted
pursuant
to a request for confidential treatment.
6
5.3. T/SI Joint Book(s). SI and TS shall each have an
undivided one-
------------------
half ( 1/2) interest in the copyrights in the T/SI Joint Book(s).
Notwithstanding the foregoing, during the Initial Term and any Renewal
Term of
this Agreement, such T/SI Joint Book(s) will only be produced, licensed,
distributed and sold as set forth in this Agreement. Upon termination of
this
Agreement, each party shall have the non-exclusive right to exploit any
rights
in the T/SI Joint Book(s) granted herein, after consultation with the
other
party and provided that the exploiting party shall pay to the other
party the
applicable royalty or revenue share payable in connection with the
exploitation
of such right as set forth in Section 11 and provided that with respect
to SI,
SI shall remove the T/SI Trademark from such T/SI Joint Book(s) and with
respect
to TS, TS shall remove the T/SI Trademark and the SI Trademark, if
applicable,
from such T/SI Joint Book(s), upon the first reprinting of said Book(s)
following termination of this Agreement. In the event a party wishes to
exploit
any right in a T/SI Joint Book(s) not granted herein, the parties shall
mutually
agree on such exploitation and any royalty and/or division of revenues
received
in connection with such exploitation.
5.4. Copyright. Except with respect to Contributed Content,
as
----------
defined in Section 5.5 below, upon termination of this Agreement, each
party
agrees to assign and/or transfer to the other without payment any rights
in the
SI Book(s) with respect to TS, or TS Book(s) with respect to SI, or
derivative
works therefrom, which such other party may have inadvertently or
otherwise
acquired in the other party's Book(s).
5.5. Contributed Content. In the event that a party
provides
--------------------
content, excluding any trademarks, to be included in the other party's
Book(s)
(the "Contributed Content"), the contributing party grants the other
party a
perpetual, non-transferable, non-exclusive license to use such content
in any
and all editions of the other party's Book(s) and the advertising,
promotion and
publicity thereof.
5.6. T/SI Trademark. Upon termination of this Agreement,
each of TS
--------------
and SI shall, except as provided Sections 5.3 and/or 15.1, immediately
cease all
uses of the T/SI Trademark and refrain from any further use of the T/SI
Trademark.
6. Editorial Responsibilities.
---------------------------
6.1. SI will deliver text and photographs for the SI
Book(s), in a
format to be mutually agreed upon and suitable for reproduction. TS
shall
reimburse SI for any pre-approved costs incurred with respect to the
creation
and preparation of the SI Books
7
(specifically excluding any Main Series Books), including but not
limited to
costs in connection with Third Party Materials, as defined below, photo
duplication costs of $[*] per dupe and/or with services rendered by
third
parties.
6.2. SI agrees to obtain, at TS's expense, written
permission for
any content or copyrighted or other material for which permission is
necessary
which is included in the SI Book(s) ("Third Party Materials") or the
advertising, promotion and publicity thereof in all necessary and
mutually
agreed upon media. Third Party Materials include, by way of example,
non-
original or licensed from third party articles, features, photographs,
art work,
maps, content, text, code, graphics or other materials used in
connection with
the SI Book(s). SI acknowledges and agrees that there shall be no charge
to TS
for any text material owned by SI contained in the SI Book(s). SI
further agrees
that it will use reasonable commercial efforts to provide photographs
for the
Book(s) at its most favorable rates, however TS agrees to reimburse SI
for
retaining a dedicated part time photo researcher for the Book(s). The
parties
acknowledge and agree that with respect to SI Book(s) entitled Twentieth
Century
Sports, SI has contracted for the services of a part time photo
researcher for a
fee of $[*], which will be payable by TS upon completion of the
research.
7. Publication.
-----------
7.1. Publication of each Book(s) will be at TS's expense at
such
time and in such style and manner, whether hard bound or paperback, as
the
parties mutually determine. Subject to the provisions of Section 10,
each party
shall have the right of final approval as to design, cover art and copy,
and
title with respect to its Book(s). Pricing of the Book(s) shall be
determined by
TS in its sole discretion.
7.2. Each party shall read, correct and return any proofs of
its
Book(s). TS may charge to SI the cost of alterations in type, plate or
film for
SI Book(s) requested by SI and made by TS, other than those due to
printer's
errors, in excess of [*] percent ([*]%) of the charge for composition.
7.3. In manufacturing the Book(s), TS represents and
warrants that
they shall be in quality equal to or greater than the hard cover edition
of Home
Run: My Life in Pictures. Hank Aaron with Dick Schapp, 1999 and the
paperback
edition of The Total Baseball Catalog: Unique baseball stuff and how to
buy it.
Edited by David Pietrusza, Lloyd Johnson & Bob Carroll, 1998 and of such
style
and appearance as to be consistent with the protection and enhancement
of the
T/SI Imprint, the SI Trademark and the TS Trademark and the goodwill
pertaining
thereto.
Portions of this exhibit marked by [*] have been omitted
pursuant to a
request for confidential treatment.
8
7.4. TS will publish a Fall, 1999 list of the Book(s) as set
forth
on Exhibit B attached hereto. Commencing in calendar year 2000, it is
the intent
of the parties that, subject to SI's timely delivery of SI Book(s)
and/or any
necessary approvals, TS will publish approximately twenty (20) to thirty
(30)
Book(s) annually.
7.5. The SI Book(s) shall bear the following notice and/or
such
other legal notices as are reasonably requested by SI for the protection
of the
copyright: (c) [year of publication] Time Inc. Used by Permission. All
Rights
Reserved. In the event SI licenses rights from a third party, SI shall
notify TS
with respect to the appropriate copyright notice. TS shall register
copyright in
and to the SI Book(s) in the name of Time Inc., or as otherwise
instructed by
SI, in conformity with United States copyright law and the Universal
Copyright
Convention. TS is authorized to execute all documents that may be
necessary or
appropriate to register copyright in the SI Book(s) or to record the
assignment
or transfer of any rights under copyright in any manner provided for by
law
anywhere in the world. SI agrees to cooperate to the extent requested by
TS in
furnishing information and executing documents required in connection
with
registration of copyright or the recording of the transfer of any
exclusive
rights under this Agreement or any amendment to this Agreement.
7.6. Subject to Section 10, the parties shall mutually
approve all
advertising, promotion and publicity of the Book(s). SI, in its sole
discretion,
may make pages in the Magazine available to promote and advertise the
Book(s).
Further, neither party shall make any public announcements with respect
to the
Book(s) and/or the T/SI Imprint without the prior consent of the other
party.
The parties agree that SI shall retain Laurence Hughes Communications, a
public
relations firm, for a period of two (2) months commencing as of April,
1999 to
publicize and promote the T/SI Imprint. TS shall be responsible for
paying such
firm directly for its services and related expenses.
8. Distribution.
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8.1. Wholesale and Retail Trade Channels. TS shall, except
as
-----------------------------------
provided herein, have the exclusive right and sole obligation, to
distribute the
Book(s) (i) through wholesale and retail trade channels and has entered
into an
agreement with PGW for such distribution, and (ii) to stadiums and other
sports
venues, sporting goods stores and through the TS Sites. In the event TS
desires
to retain a different distributor, TS shall consult with SI prior to
entering
into an agreement with any such distributor.
8.2. Direct Response. Except with respect to the Main
Series
----------------
Books, SI and its affiliated companies shall have the non-exclusive
right to
distribute the Book(s) outside of normal wholesale and retail trade
channels in
the manner and markets set forth
9
in Section 2.3. TS shall sell copies of the SI Book(s), the TS Book(s)
and the
T/SI Joint Book(s) to SI for such use at TS's direct cost to manufacture
plus
[*] percent ([*]%).
8.3. Advertiser Premium. Each party shall have the non-
exclusive
-------------------
right to sell or license advertiser premium rights in the Book(s),
subject to
the prior approval of the other. The parties shall reasonably endeavor
to co-
ordinate their activities with respect to potential customers and
advertisers
prior to any solicitation. In the event of a sale or license of such
advertiser
premium rights in a Book(s), the parties shall share revenues as
follows: [*]%
of the net proceeds received by the selling party for the advertiser
premiums
(and not the amount billed for advertising insertions in SPORTS
ILLUSTRATED
and/or the CNNSI Site with respect to SI or a TS publication or TS Sites
with
respect to TS) to the party who had made the sale and [*]% of the net
proceeds
received to the other party. "Net" as used herein shall mean the amount
received
for such advertiser premium less the unit cost and any fulfillment,
manufacturing, customizing and/or freight costs. Revenues payable by TS
to SI
shall be payable as set forth in Section 12 and revenues payable by SI
to TS
shall be payable within sixty (60) days of SI's receipt. In the event
that SI
makes such an advertiser premium sale, TS shall sell copies of the
Book(s) to SI
for such advertiser premium use at TS's direct cost to manufacture. The
parties
acknowledge and agree that copies of the work entitled Twentieth Century
Sports
purchased and distributed as a premium by SI in connection with its
"Twentieth
Century Sports Awards" event will be considered as "advertiser premiums"
and
accounted for in accordance with the provisions of this Section 8.3.
8.4. Custom Published Books. Pursuant to the provisions of
Section
----------------------
4.1, SI shall have the right to create, print, publish, sell and/or
giveaway
Custom Published Books and/or SI branded books as premiums. SI may
request TS to
perform editorial and/or production services in connection with such
Custom
Published Books, upon terms to be negotiated. SI acknowledges and agrees
that TS
shall have the right to create, print, publish, sell and/or giveaway
custom
published books and/or TS branded books as premiums.
9. TS Content. TS shall grant a license to certain of its
content to the
-----------
Magazine and/or the CNNSI Site, upon terms to be negotiated.
Portions of this exhibit marked by [*] have been omitted
pursuant to
a request for confidential treatment.
10
10. Trademark.
---------
10.1. Subject to the terms and conditions hereinafter set
forth, SI
hereby grants to TS and its sublicensees a non-exclusive license to use
the SI
Trademark and a exclusive license to use the T/SI Trademark in the
Territory
during the Initial Term and any Renewal Term solely in relation to the
distribution or exploitation of the Book(s), and the advertising,
promotion and
publicity thereof. TS and its sublicensees' shall not use the SI
Trademark
and/or the T/SI Trademark except as specifically set forth in this
Agreement.
10.2. Subject always to SI's prior written approval, which
approval
may be withheld in SI's sole and absolute discretion, TS and its
sublicensees
may use the SI Trademark and the T/SI Trademark on TS's advertising or
promotional materials which relate to the distribution and exploitation
of the
Book(s) during the Initial Term and any Renewal Term. Any such material
shall
first be submitted by TS to SI for SI's prior written approval. Once
the use of
the SI Trademark and/or the T/SI Trademark on TS's advertising or
promotional
materials has been approved by SI, the same or substantially similar
usage need
not be resubmitted for re-approval by SI and may be used again in the
like or
substantially similar manner.
10.3. TS's use of the SI Trademark and the T/SI Trademark
shall
conform to the quality standards required by SI hereunder and prescribed
by SI
from time to time during the Term. TS's use of the SI Trademark and the
T/SI
Trademark shall remain at all times subject to SI's control and
direction. SI
shall substantively respond to any TS request for approval of Trademark
usage
within ten (10) business days, and shall reimburse TS for any costs
incurred by
TS in the event that SI insists that TS destroy or redo materials (e.g.
book
jackets, advertisements, brochures, etc.) due to SI's failure to so
respond.
10.4. At no time shall TS use the SI Trademark and the T/SI
Trademark
or authorize others to use the SI Trademark and the T/SI Trademark
except as may
be specifically permitted by this Agreement or subsequently approved in
writing
by SI. TS shall not use or display the SI Trademark and the T/SI
Trademark in
any deceptive manner or misleading manner or in any manner which is
likely to
bring SI into disrepute. In any use by TS of the SI Trademark and the
T/SI
Trademark, TS will comply with such instructions and directions as SI
may
reasonably specify from time to time. The protection of the SI Trademark
and the
T/SI Trademark is a material provision of this Agreement.
10.5. TS hereby acknowledges that the SI Trademark and the
T/SI
Trademark are valuable assets belonging to Time Inc. and that all rights
in and
to the SI Trademark and the T/SI Trademark are and shall remain the sole
property of Time Inc. Nothing in this Agreement shall confer any right
of
ownership in the SI Trademark and the T/SI Trademark in TS. TS
acknowledges,
and shall not at any time contest, Time Inc.'s ownership or the validity
of the
SI Trademark and the T/SI Trademark. TS acknowledges that all rights
accruing
from its use of the SI Trademark and the T/SI
11
Trademark shall inure to the benefit of Time Inc., and TS shall execute
any
documents necessary to acknowledge such rights in SI.
10.6. TS and its sublicensees shall use the SI Trademark
hereunder
only in the form of the logotype as used on the cover of the Magazine
and the
T/SI Trademark only in the form of the logotype as used on Exhibit D and
only in
connection with the Book(s).
10.7. TS shall promptly notify SI of any use of the SI
Trademark
and/or the T/SI Trademark (or any confusingly similar trademark) by any
third
party of which TS becomes aware. SI shall then decide, in its sole
discretion,
whether proceedings should be commenced against said third party. In
the event
that SI shall as a result thereof commence a proceeding or any other
form of
action, TS shall cooperate fully with SI to whatever extent SI deems
necessary
or appropriate to prosecute such action or proceeding, provided that all
expenses of such action or proceeding shall be borne by SI and all
recoveries
(including settlement) resulting from any such action or proceeding
shall belong
to SI. Under no circumstances shall TS commence any action to protect
the SI
Trademark and/or the T/SI Trademark without first obtaining the express
written
authorization of Time Inc.'s General Counsel.
10.8. TS shall assist SI, at SI's request and expense, in the
protection of SI's rights in the SI Trademark and T/SI Trademark. TS
shall
execute and deliver to SI in such form as SI may reasonably request all
documents necessary to effectuate trademark/copyright protection or
registration
therein.
10.9. All Book(s), packaging and related marketing materials
using
the SI Trademark and/or the T/SI Trademark shall bear the following
notice
and/or such other legal notices as are reasonably requested by SI for
the
protection of the SI Trademark and the T/SI Trademark: "SPORTS
ILLUSTRATED (R)
and Total/ SPORTS ILLUSTRATED are trademarks of Time Inc. Used Under
License."
10.10. At no time shall SI use the T/SI Trademark or authorize
others
to use the T/SI Trademark except as may be specifically permitted by
this
Agreement. Upon termination of this Agreement, each of TS and SI shall,
except
as provided Sections 5.3 and/or 15.1, immediately cease all uses of the
T/SI
Trademark and refrain from any further use of the T/SI Trademark.
11. Consideration.
--------------
In consideration for SI granting to TS the foregoing rights in the
SI
Trademark, T/SI Trademark, the SI Book(s) and the content in the T/SI
Joint
Book(s), TS shall pay to SI the following:
12
11.1. Minimum Guarantee.
-----------------
11.1.1. During the Initial Term, TS guarantees to pay
SI a
minimum guarantee of [*] Dollars ($[*]) per each twelve (12) month
period during
the Initial Term commencing upon publication of the Fall, 1999 list (the
"Minimum Guarantee"), payable as follows: (i) a minimum of $[*] not
later than
December 31, 1999; (ii) a minimum of $[*] not later than June 30, 2000,
(iii) a
minimum of $[*] not later than December 31, 2000, (iv) a minimum of $[*]
not
later than June 30, 2001, (v) a minimum of $[*] not later than December
31,
2001, and (vi) a minimum of $[*] not later than June 30, 2001, If the
royalties
and other revenues actually received by SI as of such dates are less
than the
Minimum Guarantee, TS shall pay SI the difference within ten (10)
business days
of such dates. All payments made to SI hereunder, including without
limitation
payments of royalties and subsidiary rights income, shall be applied
against
such Minimum Guarantee.
11.1.2. During the Renewal Term, TS guarantees to pay
SI a
Minimum Guarantee per each twelve (12) month period of the Renewal Term,
of the
greater of (i) [*] Dollars ($[*]) or (ii) the average annual revenues
paid to SI
during the Initial Term, payable in six (6) installments each June 30
and
December 31 during the Renewal Term. If the royalties and other revenues
actually received by SI as of such dates are less than the Minimum
Guarantee, TS
shall pay SI the difference within ten (10) business days of such dates.
All
payments made to SI hereunder, including without limitation payments of
royalties and subsidiary rights income, shall be applied against such
Minimum
Guarantee.
11.2. Royalties. TS agrees to pay to SI a royalty based on
the
---------
amount received, on each copy of the Book(s) sold by TS, less actual
returns and
a reasonable reserve against returns (such reserve not to exceed [*]%
unless the
amount of actual returns exceed [*]%, in which event, the selling party
may
increase the reserve to a percentage commensurate with such actual
return rate
and to be held no longer than two (2) semi-annual royalty periods for
hard cover
editions and four (4) semi-annual royalty periods for paperback editions
as set
forth in Section 12.1. below), as follows:
11.2.1. With respect to copies sold in a hardcover
edition:
[*]% up to and including [*] copies sold; [*]% up to and including [*]
copies
sold; and [*]% on all copies sold thereafter;
11.2.2. With respect to copies sold in a trade
paperback
edition: [*]% on all copies sold.
Portions of this exhibit marked by [*] have been omitted
pursuant to
a request for confidential treatment.
13
11.2.3. With respect to copies sold in a mass market
edition:
[*]% up to and including [*] copies sold; and [*]% on all copies sold
thereafter.
11.2.4. With respect to copies sold in an audio book
edition:
[*]% on all copies sold.
11.2.5. With respect to copies sold in an electronic
edition:
[*]% on all copies sold.
11.2.5. With respect to copies sold to or through a
book club
or for export: [*]% on all copies sold.
11.2.7. In the event that a third party license (e.g.
with a
league, organization, institution or other entity) is required in
connection
with the publication of a Book(s) and such license provides for a
royalty
payable to such third party, then the royalty payable to SI hereunder
shall be
reduced by a percentage equal to the royalty payable to such third
party, but in
no event shall the royalty payable to SI be less than the greater of (i)
[*]
([*]) the prevailing royalty rate set forth above or (ii) the royalty
payable to such third party. The parties acknowledge and agree that as
of
execution hereof, royalties are payable to Major League Baseball, the
National
Hockey League and the National Football League.
11.2.8. No royalties shall be payable on copies given
away for
publicity purposes, sold to SI pursuant to Sections 2.4, 2.5., 4.6. and
8.2. or
sold at or below the cost of manufacture.
11.3. Royalties on SI Sales. In the event of sales of the
Book(s) by
---------------------
SI, SI agrees to pay to TS a royalty based on the amount received, on
each copy
of the Book(s) sold by SI, less actual returns and a reasonable reserve
against
returns (such reserve not to exceed [*]% unless the amount of actual
returns
exceed [*]%, in which event, the selling party may increase the reserve
to a
percentage commensurate with such actual return rate and to be held no
longer
than [*] ([*]) semi-annual royalty periods for hard cover editions and
[*] ([*])
semi-annual royalty periods for paperback editions as set forth in
Section 12.1.
below, at the applicable rate set forth in Sections 11.2.1 through
11.2.6.
11.4. Rights Income. The parties shall share in any net
revenues
-------------
("net revenues" as used herein shall mean gross revenues actually
received less
any sums payable to agents or taxing authorities) derived from the
license of
any subsidiary rights in the Book(s) as set forth in Section 1.3., as
follows:
Portions of this exhibit marked by [*] have been omitted
pursuant to
a request for confidential treatment.
14
11.4.1 With respect to book club, paperback reprint, audio
books and
electronic book licenses, parties shall each be entitled to [*] percent
([*]%)
of the net revenues received from any such licensee;
11.4.2. With respect to foreign language editions, the party
which
licenses such right (pursuant to Section 1.3.) shall be entitled to [*]
percent
([*]%) of the net revenues received from any such licensee and the other
party
shall be entitled to [*] percent ([*]%).
11.5. If any right specified in Section 1.3 is sub-licensed
by
either party to a company that is affiliated with the licensing party,
it is
understood that such license will be negotiated at arm's length and on
terms
similar to the terms of current agreements for similar licenses between
the
licensing party and unaffiliated companies.
12. Statements and Accountings.
---------------------------
12.1. TS shall, during the Initial Term and any Renewal Term
hereof,
render semi-annual statements of account in the months of June and
December
covering the number of books shipped, returned, and held against
returns, as
well as net sales of the book and sale, lease, or licensing of any and
all other
rights in the Book(s) to the last day of March and the last day of
September
preceding, and shall pay with the statement the amount due SI.
Statements of
account shall be forwarded to SI as herein provided whether or not any
Book(s)
have been shipped and whether or not royalties have been earned during
the
preceding accounting period.
12.2. SI shall, during the Initial Term and any Renewal Term
hereof,
render semi-annual statements of account in the months of June and
December
covering the number of books shipped, returned, and held against
returns, as
well as net sales of the book and sale, lease, or licensing of any and
all other
rights in the Book(s) to the last day of March and the last day of
September
preceding, and shall pay with the statement the amount due TS.
12.3. Each party shall keep accurate books and records
regarding the
transactions contemplated herein, which books and records shall be
available for
inspection and copying by the other party or its representatives upon
reasonable
notice at any time during regular business hours for a period of two (2)
years
following the termination of this Agreement. Each party shall have the
right to
audit and/or inspect such records two (2) times each year in order to
verify the
calculations of statements of account
Portions of this exhibit marked by [*] have been omitted
pursuant to
a request for confidential treatment.
15
rendered hereunder. Such audit and/or inspection shall be conducted
during
regular business hours at the audited company's facilities (or at such
other
places where records are located) upon not less than ten (10) business
days
prior written notice to the audited party. The audited party agrees to
provide
such auditors with access to the relevant records and facilities. The
auditing
party shall bear the cost of such audit and/or inspection, unless
underpayment
of amounts due is thereby discovered which has resulted (or will result
in the
future) in the underpayment to the auditing party of ten percent (10%)
or more
of the amount to which it is entitled during the period for which the
audit
and/or inspection is performed, in which event the cost of such audit
and/or
inspection shall be borne by audited party. All underpayments shall be
promptly
remitted to the auditing party together with interest at the prime rate
of
interest offered by Citibank N.V.
12.4. All payments made hereunder shall be in U.S. currency.
12.5. The receipt or acceptance by a party of any of the
statements
furnished hereunder or of any royalties paid hereunder (or the cashing
of any
royalty checks paid hereunder) shall not preclude the receiving party
from
questioning the correctness thereof within one (1) year of the receipt
thereof,
and in the event that any inconsistencies or mistakes are discovered in
such
statements or payments, they shall immediately be rectified and the
appropriate
payment made.
12.6. In the event TS grants a license and SI is entitled to
a share
of the proceeds of such license, SI shall be entitled to payment of
SI's share
thereof, within thirty (30) days after receipt thereof by TS. TS shall
provide
SI with copies of such licenses granted.
12.7. In the event SI grants a license and TS is entitled to
a share
of the proceeds of such license, TS shall be entitled to payment of
TS's share
thereof, within thirty (30) days after receipt thereof by SI. SI shall
provide
TS with copies of such licenses granted.
13. Copies for SI. TS shall provide SI with fifteen (15) copies of
each
--------------
Book(s) at no cost to SI. TS shall provide SI with additional
complimentary
copies as reasonably needed for publicity purposes. SI shall have the
right to
purchase additional copies of the Book(s), for SI's internal uses at
TS's direct
cost to manufacture the Book(s) plus [*] percent ([*]%), subject to
availability.
Portions of this exhibit marked by [*] have been omitted
pursuant to
a request for confidential treatment.
16
14. Additional Provisions.
----------------------
14.1. If either party hereto commences an action or has an
order for
relief entered against it under the federal bankruptcy laws as now or
hereafter
constituted or any other federal or state bankruptcy, insolvency or
other law,
or if within one hundred twenty (120) days after the commencement
against a
party of such an action, such action shall have been consented to or
shall not
have been dismissed or all orders or proceedings thereunder affecting
the
operation of such party shall not have been stayed, or if a party shall
fail
generally to pay its debts as such debts become due or shall make an
assignment
for the benefit of its creditors, or if a party discontinues its
business or
within one hundred twenty (120) days of entry of a decree appointing a
trustee
or a receiver for such party or its business, such appointment shall not
have
been vacated, the licenses granted herein and this Agreement shall
terminate
upon written notice by one party to the other and all royalties on sales
theretofore made shall become immediately due and payable.
14.2. If TS defaults in the performance of any of its
obligations
provided for in this Agreement (including any failure to make any
payment in
excess of One Thousand Dollars ($1,000) hereunder on the due date), and
any such
default is not cured by TS within thirty (30) business days of notice
from SI of
such default and setting forth the particulars thereof, then SI shall
have the
right to terminate the license granted hereby and this Agreement upon
written
notice to TS.
14.3. If SI defaults in the performance of any of its
obligations
provided for in this Agreement and any such default is not cured by SI
within
thirty (30) business days of notice from TS of such default and setting
forth
the particulars thereof, then TS shall have the right to terminate this
Agreement upon written notice to SI.
14.4. It is agreed and understood that should any act of any
government or war or fire, flood or labor troubles in the factories or
plants of
TS which are beyond the reasonable control of TS, or in the factories or
plants
of those manufacturing items necessary for the publication of the
Book(s)
prevent the performance by TS of the provisions of this Agreement, then
such
non-performance by TS shall not be considered to be a breach of this
Agreement,
and such non-performance shall be excused for so long as such condition
persist
except that if such condition persists for a period of six (6) months,
or
longer, SI shall have the right to terminate this Agreement upon written
notice
to TS.
15. Termination.
------------
15.1. Upon any termination of this Agreement pursuant to
Section 14
above, TS shall immediately cease manufacturing, producing, advertising,
promoting, distributing and selling the SI Book(s), the T/SI Joint Books
and any
TS Book(s) which utilize the SI Trademark and/or the T/SI Trademark and
shall
promptly send to SI a complete written report on TS's then current
inventories
of SI Books and the T/SI Joint Books and any TS Book(s) which utilize
the SI
Trademark and/or the T/SI Trademark. TS shall have a period of one
hundred
eighty (180) days following expiration or any
17
termination other than pursuant to Section 14 above in which to sell SI
Book(s),
the T/SI Joint Books and any TS Book(s) which utilize the SI Trademark
and/or
the T/SI Trademark previously manufactured or in production as of the
effective
date of termination or expiration of this Agreement, subject to the
obligation
of TS to account for and to pay royalties as provided in Section 11
above with
respect to such sales. Thereafter, all copies of the SI Books and the
T/SI Joint
Book(s) and any TS Book(s) which utilize the SI Trademark and/or the
T/SI
Trademark shall be promptly destroyed or otherwise disposed of to the
mutual
satisfaction of the parties. TS shall furnish to SI written
certification,
executed by a responsible officer, attesting to such destruction.
15.2. Upon and after the expiration of termination of this
Agreement,
all rights granted to TS hereunder in the SI Trademark and the SI
Book(s) shall
revert to SI, and TS shall refrain from further use of the SI Trademark
and the
SI Book(s) or any further reference thereto, direct or indirect. Rights
in the
T/SI Trademark shall be as set forth in Section 5.6.
15.3. Upon the expiration or termination of this Agreement,
all
materials created by TS for the purpose of printing the SI Trademark,
the T/SI
Trademark and the SI Book(s) shall be destroyed by TS unless TS and SI
shall
mutually agree to some other use or disposition thereof. TS shall
furnish to SI
written certification, executed by a responsible officer, attesting to
such
destruction.
15.4. Upon and after the expiration of termination of this
Agreement,
all rights granted to SI hereunder in the TS Trademark and the TS
Book(s) shall
revert to TS, and SI shall refrain from further use of the TS Trademark
and the
TS Book(s) or any further reference thereto, direct or indirect. Rights
in the
T/SI Trademark shall be as set forth in Section 5.6.
15.5. Upon the expiration or termination of this Agreement,
all
materials created by SI for the purpose of printing the TS Trademark,
the T/SI
Trademark and the TS Book(s) shall be destroyed by SI unless TS and SI
shall
mutually agree to some other use or disposition thereof. SI shall
furnish to TS
written certification, executed by a responsible officer, attesting to
such
destruction.
16. Out of Print. If at any time two (2) years or more after the
-------------
original publication date of a particular SI Book(s), said SI Book(s) is
out-of-
print (no longer published) for a period of twelve (12) or more months,
TS will,
upon written request from SI, either restore the same to print
(publication)
within twelve (12) months, or revert to SI all rights of SI in the SI
Book(s).
Any licenses previously granted will continue in effect, and TS will be
entitled
to its share of amounts received under any such licenses. A Book(s) will
be
deemed in print (offered for publication) so long as it is in stock or
on sale
in any print edition by TS or any of its licensees
17. Copyright Infringement. If the copyright of the Book(s) is
infringed,
-----------------------
and if the parties proceed jointly, the expenses and recoveries, if any,
shall
be shared equally.
18
If the parties elect not to proceed jointly, either party shall have the
right
to prosecute such action, and such party shall bear the expenses
thereof, and
any recoveries shall be shared equally after the party prosecuting such
action
has first recouped its expenses; and if such party shall not hold the
record
title of the copyright, the other party hereby consents that the action
be
brought in its name.
18. Warranties and Representations.
-------------------------------
18.1. SI represents and warrants:
18.1.1. SI has full power and authority to enter into
this
Agreement, to perform all of its obligations hereunder, and its entry
into this
Agreement does not violate any other agreement by which it is bound.
18.1.2. The SI Book(s), SI's Contributed Content and
the
conduct of SI in performing this Agreement shall at all times comply
with all
applicable United States federal, state and local laws, rules and
regulations.
18.1.3. SI has acquired and shall maintain all rights
and
licenses necessary in connection with the SI Book(s) and any Contributed
Content
provided by SI for the T/SI Joint Book(s) hereunder, including without
limitation all copyrights and still photography rights.
18.1.4. The SI Book(s) and any Contributed Content
provided by
SI for the T/SI Joint Book(s) shall not infringe upon any United States
statutory or common law copyright and shall not constitute, under United
States
federal, state or local laws, a defamation, or invasion of the right of
privacy
or publicity, or infringement of any other right of any kind, of any
third
party.
18.1.5. Time Inc. owns the SI trademark for magazines
and books
in the United States.
18.1.6. SI will not use the TS Trademark and the TS
Books in
any way not authorized by this Agreement.
18.2. TS represents and warrants:
18.2.1 TS has full power and authority to enter into
this
Agreement, to perform all of its obligations hereunder, and its entry
into this
Agreement does not violate any other agreement by which it is bound.
18.2.2. The TS Book(s), the TS Contributed Content and
the
conduct of TS in performing this Agreement shall at all times comply
with all
applicable United States federal, state and local laws, rules and
regulations.
18.2.3. TS has acquired and shall maintain all rights
and
licenses
19
necessary in connection with the TS Book(s) and any Contributed Content
provided
by TS for the T/SI Joint Book(s) hereunder, including without limitation
all
copyrights and still photography rights.
18.2.4. The TS Book(s) and any Contributed Content
provided by
TS for the T/SI Joint Book(s) shall not infringe upon any United States
statutory or common law copyright and shall not constitute, under United
States
federal, state or local laws, a defamation, or invasion of the right of
privacy
or publicity, or infringement of any other right of any kind, of any
third
party.
18.2.5. TS owns the TS Trademark for books in the
United
States.
18.2.6. TS will not use the SI Trademark or the SI
Book(s) in
any way not authorized by this Agreement;
18.2.7. TS's manufacture, sale and distribution of the
Book(s)
will comply in all respects with all applicable federal, state and local
laws,
ordinances, rules and regulations (including manufacturing codes). In
the event
that TS contracts out the manufacture or distribution of the Book(s), TS
shall
use reasonable good faith efforts to insure that said manufacturer or
distributor complies with the terms of this subparagraph.
19. Indemnification. SI and TS shall indemnify and hold each
other
----------------
harmless from and against any and all liability, loss, damage or injury,
including reasonable counsel fees, arising out of a breach, or an
allegation
which if true would constitute a breach, of any representation or
warranty set
forth herein, provided that the party seeking to enforce such indemnity
shall
provide to the indemnifying party prompt notice of any claim giving rise
to such
indemnity and the opportunity to defend the same with counsel of its own
choosing.
20. Insurance. TS shall maintain insurance in an amount not less
than
----------
three million dollars ($3,000,000) aggregate, one million dollars
($1,000,000)
per occurrence, with a carrier reasonably satisfactory to SI, concerning
and
covering any and all claims which may arise out of TS's design,
publication,
distribution and sale of the Book(s). Such insurance shall name SI as an
additional insured. Each such policy shall have attached an endorsement
to the
effect that such policy shall not be modified, canceled or terminated
without at
least thirty (30) days prior written notice to SI.
20
21 Non-Compete. During the Initial Term and/or any Renewal
Term,TS will
------------
not enter into any arrangement for the publication of books with any
direct
competitors of SI, including but not limited to: [ * ]. without SI's
prior
written consent. Notwithstanding the foregoing, SI acknowledges and
agrees that
TS has an existing agreement with Baseball Weekly.
22. Approvals. Anything contained herein to the contrary
notwithstanding,
---------
if either party has not approved or disapproved any materials and/or
proposals
submitted to it for approval pursuant to Sections 1.2.,1.3., 5.3., 7.1.,
7.6.,
8.3. and 21 within ten (10) business days or five (5) business days with
respect
to design and cover art as set forth in Section 7.1 , then such
materials shall
be deemed to have been approved. SI and TS shall not unreasonably
withhold any
of their approvals hereunder. The provisions of this Section 22 shall
not,
however, apply to approvals required to be given pursuant to Section 10
hereof.
23. Notices.
--------
23.1. All notices to be given under this Agreement shall be
in
writing and shall be delivered to the party to whom the notice is given
(i) by
hand or courier, (ii) by certified or registered mail, postage prepaid,
or (ii)
by facsimile (with a copy as provided in (i) or (ii) above) at the
address or
facsimile number given below or to such other address or facsimile
number as may
be advised by prior notice in writing to the other party from time to
time.
If to TS:
Total Sports Inc.
105 Abeel Street
Kingston, New York
Attention: John Thorn
SPORTS ILLUSTRATED,
a division of Time Inc.
Time & Life Building
Rockefeller Center
New York, New York 10020
Attention: Stanley Weil
Portions of this exhibit marked by [*] have been omitted
pursuant to
a request for confidential treatment.
21
with a copy to:
Time Inc.
Time & Life Building
Rockefeller Center
New York, New York 10020
Attention: General Counsel
23.2. Notice given under this Agreement shall be deemed duly
given
(i) if delivered by hand or courier, on the date of such delivery, (ii)
if sent
by registered or certified mail, five (5) business days after dispatch;
and
(iii) if sent by facsimile, when the copy is delivered pursuant to
Paragraph
23.1(i) or (iii) above.
23.3. All payments due to either party under this Agreement
shall be
delivered to at the respective address set forth above.
24. This Agreement shall not be assigned by either party without
the prior
written consent of the other party, except to a parent, subsidiary or
affiliate
or in connection with a transfer of substantially all its assets. This
Agreement
shall inure to the benefit of and be binding upon each of the parties
hereto and
their respective successors and assigns.
25. Nothing contained herein shall be construed to constitute the
parties
to be partners or joint ventures with or agents for one another. Neither
TS nor
SI shall have any authority to, nor shall either, obligate or bind the
other in
any manner whatsoever.
26. No term or provision of this Agreement shall be considered
waived by
either party, and no breach excused by either party, unless such waiver
or
consent is in writing signed on behalf of the party against whom the
waiver is
asserted. No consent by either party to, or waiver of, a breach by
either party,
whether express or implied, will constitute a consent to, waiver of, or
excuse
of any other, different or subsequent breach by either party.
27. This Agreement shall be governed by and construed and enforced
in
accordance with the substantive laws of the State of the New York,
without
regard to its conflict of laws rules.
28. This Agreement represents the entire understanding between the
parties
with respect to the matters dealt with herein and supersedes all prior
agreements, written or oral, with respect to the subject matter hereof
and may
not be changed or modified except by an instrument in writing duly
executed by
both parties.
22
IN WITNESS WHEREOF, the parties have executed this Agreement as of
the
date first written above.
SPORTS ILLUSTRATED,
a division of Time Inc.
By:___________________
Name:
Title:
AGREED:
TOTAL SPORTS INC.
By:___________________
Name:
Title:
23